Character Group enjoys robust year

Toys, games and giftware firm Character Group revealed a 19.8% hike in full year pre-tax profit and said while it has reduced its sales forecasts for the current year, it expects to maintain profit in 2012 at similar levels to this year.Pre-tax profit rose to £9.05m in the year ended 31 August 2011 from £7.55m a year earlier. Revenue for the year increased 11.4% to £94.95m.Character said its key ranges performed well in a tough retail environment and it expects to introduce new products through the remainder of this financial year. Overall margins reduced slightly to 34.3% compared to 35.3% last year."Looking ahead, whilst we cannot influence the overall toy industry, and retail spending in total, we believe that by continuing to 'refresh' our product lines at retail and by marketing our products in innovative ways, we shall be relatively successful when compared to the industry as a whole," the group said in a company statement. "Bearing in mind the tough economic conditions, we have reduced our sales forecasts for the current financial year and taken steps to reduce our total costs accordingly," it added. Character said it still expects to be cash generative and provided it sees no further deterioration in sales, it also expects to maintain profitability for 2012 at a similar level to the financial year ended 31 August 2011.A final dividend of 3p has been offered, taking the total for the year to 6p.--cj